Correlation Between Great Elm and CVF Technologies
Can any of the company-specific risk be diversified away by investing in both Great Elm and CVF Technologies at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Great Elm and CVF Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great Elm Capital and CVF Technologies, you can compare the effects of market volatilities on Great Elm and CVF Technologies and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Great Elm with a short position of CVF Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Elm and CVF Technologies.
Diversification Opportunities for Great Elm and CVF Technologies
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Great and CVF is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Great Elm Capital and CVF Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CVF Technologies and Great Elm is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Great Elm Capital are associated (or correlated) with CVF Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CVF Technologies has no effect on the direction of Great Elm i.e., Great Elm and CVF Technologies go up and down completely randomly.
Pair Corralation between Great Elm and CVF Technologies
If you would invest 1.30 in CVF Technologies on August 27, 2024 and sell it today you would earn a total of 0.00 from holding CVF Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Great Elm Capital vs. CVF Technologies
Performance |
| Timeline |
| Great Elm Capital |
| CVF Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Great Elm and CVF Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Elm and CVF Technologies
The main advantage of trading using opposite Great Elm and CVF Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Elm position performs unexpectedly, CVF Technologies can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CVF Technologies will offset losses from the drop in CVF Technologies' long position.| Great Elm vs. Gladstone Investment | Great Elm vs. B Riley Financial | Great Elm vs. HUMANA INC | Great Elm vs. Aquagold International |
| CVF Technologies vs. Guggenheim Strategic Opportunities | CVF Technologies vs. Pimco Dynamic Income | CVF Technologies vs. Rivernorth Opportunities | CVF Technologies vs. Cornerstone Strategic Value |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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